Mohave inc. purchased land, building, and equipment from laguna corporation for a cash payment of $315,000. the estimated fair values of the assets are land $60,000, building $220,000, and equipment $80,000. at what amounts should each of the three assets be recorded? (round final answer to 0 deciaml places, e. g. 5,275.)

recorder amount

land

building

equipment

Recorder Amount: 315000

Land: 52500

Building: 192500

Equipment: 70000

Explanation:

Record the value with the lower of cost or fair value. Since the cost(cash price) is lower. We calculate the proportion of each asset using the fair value figures:

formula: percentage of each asset as a function of fair value multiplied by cash payment.

Total: 60000+220000+80000=360000

land=0.167(that is 60/360) * 315000 = 52500

Building=0.611 * 315000 = 192500

Equipment = 0.22*315000=70000

answer; ///decision making under risk;